Christin has a monthly income of $500 that he allocates between two goods: food and clothing. Suppose food costs $8 per pound and clothing cost $5 per piece. a) Draw her budget constraint properly labelling the axes. 0.5 b) Suppose also that her utility function is given by ?( f,c)= 2f ^2 + c^2 . What combination of food and clothing does she buy in order to maximize her utility? Show your work mathematically. Round your answer to two (2) decimal points.

Christin has a monthly income of $500 that he allocates between two goods: food and clothing. Suppose food costs $8 per pound and clothing cost $5 per piece. a) Draw her budget constraint properly labelling the axes. 0.5 b) Suppose also that her utility function is given by ?( f,c)= 2f ^2 + c^2 . What combination of food and clothing does she buy in order to maximize her utility? Show your work mathematically. Round your answer to two (2) decimal points.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 11SQ

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Question

Christin has a monthly income of $500 that he allocates between two goods: food and clothing. Suppose food costs $8 per pound and clothing cost $5 per piece.

a) Draw her budget constraint properly labelling the axes. 0.5

b) Suppose also that her utility function is given by ?( f,c)= 2f ^2 + c^2 . What combination of food and clothing does she buy in order to maximize her utility? Show your work mathematically. Round your answer to two (2) decimal points.

Christin has a monthly income of $500 that he allocates between two goods: food
and clothing. Suppose food costs $8 per pound and clothing cost $5 per piece.
a) Draw her budget constraint properly labelling the axes.
b) Suppose also that her utility function is given by U(F, C) = 2F2 +C?. What
combination of food and clothing does she buy in order to maximize her utility?
Show your work mathematically. Round your answer to two (2) decimal points.
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